A survey conducted by Markit, has revealed that nearly 40% of households’ finances suffered greatly these last two months. The survey was carried out on 1,500 adults and showed that those questioned saw their finances decline at the quickest rate in two and a half years as a result of increasing debt and reduced income and savings.
Less than 6% of those surveyed told of an improvement in their financial circumstances.
Markit also uses the Household Finances Index (HFI) which has shown that the amount of cash household’s have available to spend has decreased rapidly and in addition the amount of money people have in savings has fallen dramatically.
The data collected this month conveys that people’s income after tax has also fallen sharply and this has been further affected by increasing prices.
These reports on deteriorating financial circumstances apply to all earning levels, ages and regions in the UK. However, all Northern regions in England have experienced quicker rates of financial deterioration.
The senior economist at Markit, Tim Moore, has also claimed that he is doubtful people’s finances will improve any time soon due to the predictions of inflation rising to 5% as a result of increasing oil and utility prices.
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MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.